COBRA coverage for controlled group members

[Guest tonjer]

I have a situation where a controlled group member is going out of business ("A") and another member ("B") must provide continuation coverage for the terminated employees of A. How do you handle the situation when the insurance company of B will not (or says they will not) provide the continuation coverage for the employees of A stating that the A employees are not covered under B's plan, therefore the carrier does not have to provide A's employees with coverage? What legal authority states that the insurance company must offer this coverage for the employees of A?

[Kirk Maldonado]

While not terribly responsive to your inquiry, I want to point out that COBRA imposes burdens on the employer; not the insurance company.